HISTORICAL COST VERSUS FAIR VALUE

The current process of accounting globalization is based mainly on the concept of just value. This concept has been the source of vivid debates with regards to its meaning in contemporary accountancy, both in theory and in practice. The increased importanhistorical cost, fair value, valuation, accounting system

Analysis of International Accounting Regulations with Regards to Fair Value

Unifying the economical-financial information at an international level represents today, within the context of the globalization and integration of the financial markets around the world, an important and urgent demand. One of the coordinates of accounting globalization is the fair value based valuation system. This tendency arises from the contents of international accounting standards and from the progress of world-wide regulating practice. The economic and market events of the past years have highlighted the importance of fair value measurements used in financial statements and have emphasized the need for consistency and comparability in those measurements in financial statements prepared around the globe.fair value, harmonization, IASB, FASB, Accounting Directive, IFRS, FAS, Exposure Draft

CASE STUDY ON RE-ADJUSTMENTS DEPENDING ON PRICE MODIFICATION

Inflationary moments, characterized by significant price rises, have proved that accountingsystems based on historical costs provide a distorted image of the reality: the elements ofthe balance sheet are under-valuated, and the stock-related expenses and amortization in theprofit and loss account are also under-valuated. Under these circumstances, the result isover-valuated, and its distribution leads to allotments from the company’s capital. In thispaper we draw up a case study with regards to the methods used for adjusting pricemodification, clearly outlining, through a comparative analysis, the main differencesbetween the accounting system based on historical cost and inflation accounting

HISTORICAL COST VERSUS FAIR VALUE

The current process of accounting globalization is based mainly on the concept of just value. This concept has been the source of vivid debates with regards to its meaning in contemporary accountancy, both in theory and in practice. The increased importa

Analysis of International Accounting Regulations with Regards to Fair Value

Unifying the economical-financial information at an international level represents today, within the context of the globalization and integration of the financial markets around the world, an important and urgent demand. One of the coordinates of accounting globalization is the fair value based valuation system. This tendency arises from the contents of international accounting standards and from the progress of world-wide regulating practice. The economic and market events of the past years have highlighted the importance of fair value measurements used in financial statements and have emphasized the need for consistency and comparability in those measurements infinancial statements prepared around the globe

THE QUALITY OF ACCOUNTING DATA – AN ABSOLUTE REQUIREMENT

The large variety of uses that accounting products take, as well as their wide range of informational needs require that certain criteria be established, with regards to the quality of accounting data, and these criteria must be fully met. The concept o

FAIR VALUE MEASUREMENT UNDER IFRS 13

The IFRS 13, „Fair Value Measurement”, was first published in May 2011 and it applies to annual reporting periods that begin on or after January 1st 2013; this standard comes as a result of shared efforts on the part of the IASB and the FASB to develop a convergent framework regarding fair value measurement. The main purpose of this paper is to describe the main provisions of the IFRS 13 regarding fair value measurement, with a special emphasis on key concepts found throughout the standard, which refer to the principal market, the most advantageous market, the highest and best use, valuation techniques, and value hierarchy

International Accounting Convergence in the Field of Fair Value Measurement

The investors’ desire for high-quality, internationally comparable financial information that is useful for decision-making in increasingly global capital markets imposed an international convergence, the ultimate goal of which is a single set of international accounting standards that companies worldwide would use for both domestic and cross-border financial reporting. The guidance, set out in IFRS 13 Fair Value Measurement and the update to Topic 820 (formerly referred to as SFAS 157), completes a major project of the boards’ joint work to improve IFRSs and US GAAP and to bring about their convergence. This article describes the controversial history of fair value measurement and the main novelties in the field of fair value measurement, arising from the international convergence process

Fair value assessment – valences and limitations

In recent years, FASB and IASB have intensified research on fair value measurements and planned to further expand the scope of applicability of fair value measurements. However, organizations responsible for formulating the principles, enterprises, social bodies and academia are locked in a dispute over the advantages and disadvantages of fair value measurements, and no consensus has been reached yet. This paper explores the arguments for and against fair value and tries to find out whether advantages are superior to disadvantages of fair value measurements.fair value, FASB, IASB, measurement

Aspects Regarding the Elaborating and Approval of IPSASs Improvements 2009

The elaboration of international referentials IPSAS (International Public Sector Accounting Standards) by competent bodies (IPSASB – International Public Sector Accounting Standards Board) involves a continuous junction between the specific needs of national accounting systems in the context of the harmonization process and their convergence and the identification of the needs of economic, political, social systems, whose interdependency is evident. This process determines the continuous update of IPSAS, for being able to answer to many current problems. The study aims to highlight through a positivist approach, combining quantitative with qualitative research, how Exposure Draft 42 – Improvements to IPSASs, succeds to capture the need for changing of content, namely terminology of 12 IPSAS. Following the purpose of this process, through the adoption of changes in January 2010, we can identify how comments of various professional accountancy bodies influenced the final decision of IPSASB. The study is of great importance for both the theoreticians from accounting field, who can make an image on the research trends in this field, and the practicians who can get the answer to some problems of IPSASs, whose solution will be achieved by international standard approval.accounting standards, ISPAS, improvement, approval